National Minimum Wage and Living Wage: accommodation

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Accommodation rates

Accommodation provided by an employer can be taken into account when calculating the National Minimum Wage or National Living Wage.

No other kind of company benefit (such as food, a car, childcare vouchers) counts towards the minimum wage.

Accommodation offset rates

The accommodation rates are set in April each year.

Year Daily accommodation offset rate Weekly accommodation offset rate
April 2023 £9.10 £63.70
April 2024 £9.99 £69.93

Previous rates

Year Daily accommodation offset rate Weekly accommodation offset rate
2022 £8.70 £60.90
2021 £8.36 £58.52
2020 £8.20 £57.40
2019 £7.55 £52.85
2018 £7 £49
2017 £6.40 £44.80

Use the minimum wage calculator to check if it’s been paid.

Using the offset rate to work out the minimum wage

If an employer charges more than the offset rate, the difference is taken off the worker’s pay which counts for the National Minimum Wage or National Living Wage.

This means the higher the accommodation charge, the lower a worker’s pay when calculating the minimum wage.

If the accommodation charge is at or below the offset rate, it does not have an effect on the worker’s pay.

If the accommodation is free, the offset rate is added to the worker’s pay.

See examples of accommodation rates for minimum wage calculations.